Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Solar Innovations Corporation bought a machine at the beginning of the year at a cost of $22,000. The estimated useful life was five years and
Solar Innovations Corporation bought a machine at the beginning of the year at a cost of $22,000. The estimated useful life was five years and the residual value was $2,000. Assume that the estimated productive life of the machine is 10,000 units. Expected annual production was year 1, 2,000 units; year 2, 3,000 units; year 3, 2,000 units; year 4, 2,000 units; and year 5, 1,000 units. Required: Complete a depreciation schedule for each of the alternative methods. a. Straight-line. b. Units-of-production. c. Double-declining-balance.
Reg 1A Req 1B Req 10 Req 2A Req 2B Complete a depreciation schedule for Straight-line method. (Do not round intermedi Balance Sheet Income Statement Depreciation Expense Year Cost Accumulated Depreciation Book Value 22,000 $ At acquisition 1 $ 4,000 $ 4,000$ 4,000 $ 22,000 $ 18,000 X $ 18,000 14,000 $ 8,000 $ N 3 $ 4,000 $ 14,000 $ 12,000 $ 10,000 4 $ 4,000 $ 10,000 X $ 16,000 $ 6,000 5 $ 4,000 $ 6,000 X $ 20,000 $ 2,000 Complete a depreciation schedule for Units-of-production method. (Do not round intermediate calculations.) Balance Sheet Income Statement Depreciation Expense Year Cost Accumulated Depreciation Book Value At acquisition $ 22,000 1 $ 4,000 $ $ 18,000 4,000 10,000 2 $ 6,000 $ $ 12,000 3 $ 4,000 $ 22,000 $ 18,000 $ 12,000 $ 8,000 X $ 4,000 $ $ 8,000 14,000 18,000 4 $ 4,000 $ $ 4,000 5 $ 2,000 $ 20,000 $ 2,000 Complete a depreciation schedule for Double-declining-balance method. (Do not round intermediate calculations. Round final answers to the nearest whole dollars.) Balance Sheet Income Statement Depreciation Expense Year Cost Accumulated Depreciation Book Value At acquisition $ 22,000 13,200 1 $ 8,800 $ 22,000 $ 8,800 $ 2 $ $ 14,080 $ 7,920 3 $ 5,280 3,168 1,901 $ $ 4,752 13,200 X $ 7,920 X $ 4,752 $ 2,851 X $ 17,248 19,149 4 $ $ $ 2,851 2,000 5 $ 851 $ 20,000 $Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started